The Advantages of Uniform Costing
The advantages of the uniform costing to several interested groups can be summarized as follows -
To the Member Units -
These are the natural claimants to the advantages of the system. Such types of advantages are -
1. High standards -
Either extremely qualified experienced professional and consultants or the experienced members in the industry design uniform costing system. So it makes sure high standard of operation.
2. Cost comparisons -
It is the essential object of the system. A successful system of uniform costing every time assists of the member units to place the points of inefficiencies in comparison to industry generally and with close rival particularly. It results in enhancement of work and establishing standards and benchmarking for achievements.
3. Healthy competition -
Uniform costing assists to create belief between the member units and prevents the price-cutting or another cut-throat competitions tactics and measures. It makes sure to adopt all policies that provide reasonable and fair rate of return on the investment.
4. Automation of data -
Uniform costing requires computerization of accounting, classification, data collection and reporting. That is why automation of data becomes essential. It makes sure reliability of data and information.
5. Benefits to Smaller Units -
The smaller units obtain benefits of R & D of large units and enhance their competitiveness.
To the Workers -
1. Uniform, just and fair wage structure within the industry.
2. decreased Labour turnover.
3. Higher productivity makes sure higher wages and bonus.
To Consumers -
1. Cost reduction result into price reduction.
2. Fair prices.
3. enhanced product and services.
4. Enhanced quality and assurance of after sales services.
To industry -
1. Consistent data and information can be supplied to the government and fair government policies can be adopted.
2. Introducing enhanced methodologies and technologies can eliminate all types' wastages.
3. Industrial activities can be directed and planned in very meaningful way.
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